To our shareholders and investors

We would like to begin this message by expressing gratitude to our shareholders and investors for their ongoing support.

1. Operating and financial review

During the first half of the fiscal year (from January 1, 2026 to June 30, 2026), the global economy remained solid overall, although uncertainty persisted given a sluggish Chinese economy and concerns over geopolitical risks.

Looking at the business environment, demand for labor-saving and automation investment has continued to remain solid in the manufacturing and distribution industry, mainly in Japan and the United States, against the backdrop of labor shortages and rising labor costs.

In the semiconductor industry, efforts to expand production capacity in advanced fields have continued, supported by expanding demand for AI applications. In China, investment continues in line with efforts to strengthen and promote domestic production.

In the automotive industry, delays in customers’ investment decision-making caused by U.S. trade policy, which were observed in the previous fiscal year, have been gradually easing. Meanwhile, demand is continuing for investment in automation at airports to meet the increase in the number of air passengers, particularly in the United States and certain other countries.

In this economic and business environment, during the first half of the fiscal year, orders increased significantly, driven primarily by cleanroom systems for semiconductor production lines, with orders for intralogistics systems from manufacturers and distributors and automotive systems also rising.

Sales increased, supported by an extensive order backlog at the end of the previous fiscal year, with higher sales of cleanroom systems and airport systems.

Specifically, the Group received orders of 440,186 million yen, up 31.6% from the same period of the previous fiscal year, and recorded sales of 355,513 million yen, up 8.9%.

Profits increased, driven by higher sales and improved profitability in cleanroom systems.

Consequently, the Group posted operating income of 56,680 million yen, up 10.9% from the same period of the previous fiscal year, and ordinary income of 58,666 million yen, up 11.7%. Net income attributable to shareholders of the parent company was 43,143 million yen, up 14.7%.

Orders, sales, operating income, ordinary income, and net income attributable to shareholders of the parent company reached new record highs for the first half of the fiscal year.

2. Outlook for the fiscal year ending December 31, 2026

The Company has revised upward its full-year consolidated earnings forecast for the fiscal year ending December 31, 2026 announced on February 12, 2026, as follows.

Reflecting the favorable order environment, smooth progress in projects for cleanroom systems for semiconductor production lines, earlier-than-expected revenue recognition for certain projects, and improved profitability driven by progress in production efficiency initiatives and improvements in project management, the Company revised upward its forecasts for orders, sales, and all profit items.

  Year ended December 2025 Year ending December 2026 forecast
anounced on February
Year ending December 2026 forecast
anounced on August
Orders received 672.6 billion yen 780.0~820.0 billion yen 860.0~900.0 billion yen
Net sales 660.7 billion yen 700.0 billion yen 735.0 billion yen
Operating income 100.8 billion yen 105.0 billion yen 113.0 billion yen
Ordinary income 104.6 billion yen 108.5 billion yen 116.5 billion yen
Net income attributable to shareholders of the parent company 78.0 billion yen 80.0 billion yen 86.5 billion yen

The above forecast values are our projections based on information available at the time of this release and contain various uncertainties. Actual results may differ materially from forecast values due to factors such as changes in the business performance of the Company.

3. Basic policy for dividends

The Company regards the return of profits to shareholders as one of its most important management tasks and adopts a performance-based policy regarding cash dividends based on consolidated net income. After dividends, the Company appropriates the remaining surplus to internal reserves to be used as investment funds for future growth.

In the four-year business plan for 2027 that started in April 2024, the Company aims to achieve a consolidated dividend payout ratio of 35% or more for each fiscal year.

In light of the upward revision to its earnings forecast and the Company’s shareholder return policy, the Company has increased the Q2-end (interim) dividend for the fiscal year ending December 31, 2026 by 4 yen per share from the previous forecast, to 40 yen per share. The Company has also revised its year-end dividend forecast to 50 yen per share, an increase of 4 yen per share from the previous forecast. As a result, the forecast annual dividend has been revised to 90 yen per share, an increase of 8 yen per share from the previous forecast. Accordingly, the consolidated dividend payout ratio for the fiscal year ending December 31, 2026 is expected to be 38.5%.

We respectfully ask our shareholders and investors for their continued support.

August 2026
Tomoaki Terai, President and CEO

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